The US housing market is going through significant changes right now. The average rate on a 30-year mortgage has increased by around 80 basis points in the past couple of weeks. At the same, the number of housing units on the market has increased by over 78% in the last 12 months.
We’ll be discussing what’s happening with the US housing market in this blog post. We’ll also be providing some predictions about the future.
Asking prices increasing across the nation
The weekly inventory report released by Realtor.com revealed that asking prices increased by 7.9% in the past year. Over the past ten weeks, we’ve seen single-digit price increases every week. This is different from the previous year, when we only saw single-digit price gains during the last four weeks. The 7.9% gain is also half of the 16% increase that we saw during the fall of 2022.
Housing inventory is increasing
The number of housing units available for sale during the week of February 19 compared to last year was 70.1% higher, which is an indication that the market is starting to improve. Despite the lack of new listings, the housing supply has continued to increase, at least since mid-May last year.
New listings are decreasing
For the 32nd consecutive week, new listings have decreased. The decline in new listings is attributed to a decrease in home-buying activity. However, the rising supply of housing has started to put downward pressure on inventory levels. During the past two weeks alone, new listings have dropped by double-digit percentages.
Predictions for the future
Despite the recent changes in the housing market, we’re still expecting home prices to continue to increase, though at a slower rate. This is because the lack of supply is expected to continue to increase, which will lead to more buyers looking for properties. At the same time, the rising number of homes available for sale could lead to lower prices.
The increasing housing inventory and rising mortgage rates are some of the factors that have caused the US housing market to undergo significant changes. Despite the changes, asking prices continue to increase. It’s still not clear how the market will evolve in the coming months. We’ll be keeping a close eye on the trends to provide our readers with updated information.